Archive · 12 Dec 2025
PFRDA Expands NPS Investment Options to Include Gold, Silver, and More
The Pension Fund Regulatory and Development Authority (PFRDA) has allowed National Pension System (NPS) funds to invest in new types of assets like gold and silver ETFs, different kinds of investment funds, and bonds.
This change is meant to help pension funds spread their investments and reduce risk.
There are strict rules about how much can be invested in each new type of asset to keep the investments safe.
For example, gold and silver ETFs can only make up a small part of the total investments.
The goal is to make pension funds more stable and give people better options for their retirement savings.
The PFRDA is also considering reducing the mandatory annuitization requirement to 20% from the current 40%.
PFRDA has allowed NPS funds to invest in gold and silver ETFs, AIFs, REITs, InvITs, municipal bonds, government debt ETFs, and Basel III AT1 bonds.
Gold and silver ETFs are grouped under the equity category for Non-Government Sector (NGS) schemes, with a combined cap of 5% of the equity allocation.
Government Sector (GS) schemes have separate caps of 1% each for gold and silver investments.
Investments in REITs and InvITs are capped at 3% of the total AUM of the Pension Fund.
Municipal bonds must have a AAA rating from at least two SEBI-recognised rating agencies to be eligible for investment.
- Who
- Pension Fund Regulatory and Development Authority (PFRDA)
- What
- Expanded investment options for National Pension System (NPS) funds to include gold, silver, and other assets
- When
- As per the latest official circular
- Where
- India
- Why
- To provide more diversification options and stability to NPS portfolios
- New Investment Options
- Gold and Silver ETFs, Nifty 250 stocks, Debt papers with AA rating
- Equity Allocation Cap for NGS
- 5% for Gold, Silver ETFs, REITs, and Equity AIFs
- Debt Allocation Cap for NGS
- 5% for Debt AIFs, InvIT Debt, and Basel III AT1 Bonds
- Government Sector Cap for Gold
- 1% of total assets
- Government Sector Cap for Silver
- 1% of total assets
- REITs and InvITs Exposure Cap
- 3% of total AUM
- Municipal Bonds Rating Requirement
- AAA rating from at least two SEBI-recognised agencies
- Government Debt ETFs Cap for GS
- 5% of debt allocation
- Government Debt ETFs Cap for NGS
- 5% of Asset Class C
- Basel III AT1 Bonds Cap
- 5% of total AUM
- Nifty 250 Stocks Allocation
- 90% in top 200 stocks
Sources
PFRDA allows NPS funds to invest in new assets including gold, silver; Here’s what you need to know
NPS gets makeover: Gold, silver ETFs, AIFs, new bonds added to investment menu
Retirement savings revamp: NPS now includes gold, silver ETFs
PFRDA widens investment options for pension funds
Pension funds allowed invest in gold and silver ETFs
